Traders Are Electing to Wait

Many are taking a wait-and-see approach before making any major commitments based on uncertain political outcomes.

THE MIDTERM ELECTION has captivated the country, but options traders are rather nonplussed ahead of an outcome that is expected to result in Congressional gridlock.

Sure, traders are buying more puts to bet on sectors such as pharmaceuticals, defense, and financials that could decline if Democrats take control of the House, but traders are otherwise taking a wait-and-see approach before making any major commitments based on uncertain...